Blockchain Impact on Bank Pricing: A Literature Review

Blockchain's Impact on Bank Pricing: Insights from Recent Research

This review examines three significant English-language research articles published in the last 15 years, exploring the potential effects of blockchain technology on bank pricing strategies. The selection excludes works by Chinese authors to highlight global perspectives.

1. Dwyer, G. P., & Malone, J. P. (2019). The Economics of Blockchain. Journal of Economic Perspectives, 33(2), 53-76.

This paper offers a comprehensive overview of blockchain's economic implications, including its potential to revolutionize traditional financial services. The authors delve into how blockchain's inherent characteristics, such as transparency and immutability, can reshape cost structures within the banking sector, ultimately impacting pricing models.

2. Catalini, C., & Gans, J. S. (2016). Some simple economics of the blockchain. National Bureau of Economic Research Working Paper No. 22952.

Catalini and Gans provide a foundational analysis of blockchain's economic underpinnings. They explore how this technology might reduce transaction costs and enhance efficiency in financial markets. Their work sheds light on how these factors could contribute to lower pricing for banking services.

3. Yermack, D. (2017). Corporate governance and blockchains. Review of Finance, 21(1), 7-31.

Yermack investigates the implications of blockchain technology for corporate governance within financial institutions. He examines how blockchain's transparency and security features can improve accountability and reduce agency costs, potentially leading to more competitive pricing in the banking industry.

These studies collectively highlight the transformative potential of blockchain technology on bank pricing. As research in this domain progresses, we can anticipate a clearer understanding of how blockchain will reshape traditional banking models and influence the cost of financial services.